Smaller Employers Can Save 20% to 40% or more with a Revised old Successful Strategy – Level Self-Funding!
Self-Funded Health Plans are now Cost-Effective and Accessible for Employers with as few as 50 Employees! 
Thanks to innovations in plan design and the availability of Stop-Loss Coverage, level self-funding has become a practical and sustainable solution to the skyrocketing costs of traditional health insurance and PPO Plans.
Employers can now take control of their healthcare spend, gain transparency, enjoy greater flexibility and better meet Employee's needs — without taking on unmanageable risk!
Level Self-Funding is a hybrid health insurance plan for Employers that combines cost-saving elements of self-funding and the budgeted payments of traditional insurance. Employers pay a fixed monthly fee that covers claims, administration, and stop-loss insurance to cap their risk. Any unused claims funds may be returned at the end of the year, offering predictable costs while allowing for potential savings and better data transparency. Level Self-Funded health plans offer a balance between the stability of fully insured plans and the potential cost savings of self-funding. They are a growing popular option for small and mid-sized Employers!
What are the Cost-Savings from a Level Self-Funded Health Plan?
Level self-funded health plans offer several avenues for cost savings, primarily by giving Employers more control and transparency than fully insured plans, while mitigating high-cost risks.
Key Potential Cost Savings Include:
Potential for Surplus Refunds: If the total claims for the Employee group are lower than the estimated amount paid into the claims fund, the Employer may receive a refund of some or all of the surplus at the end of the plan year. This potential for money back (which is kept by the insurer in fully insured plans) is a major draw for Employers with healthier workforces.
- Avoidance of State Premium Taxes: Self-funded and level-funded plans are typically regulated under federal law (ERISA), which exempts them from state insurance premium taxes. These taxes usually range from 2-3% of the premium cost, so avoiding them can lead to direct savings.
- Elimination of Carrier Profit Margins: By assuming a portion of the risk, employers bypass the profit margins (typically 3-5%) that traditional insurance carriers build into their fully insured premiums.
- Access to Claims Data and Cost Control: Employers gain access to detailed claims data, allowing them to identify cost drivers, utilization trends (e.g., high ER use, expensive prescriptions), and specific health conditions within their workforce. These insights enable the implementation of targeted cost-containment strategies, such as wellness programs, disease management initiatives, or education on using urgent care vs. the ER, which can proactively reduce future claims costs.
- Flexibility in Plan Design: Employers have greater flexibility to customize plan design, including choice of third-party administrators (TPAs), pharmacy benefit managers (PBMs), and provider networks. This control allows for tailoring benefits to specific needs and negotiating better rates for services, which can lead to lower overall healthcare spending.
- Protection Against Catastrophic Claims: Stop-loss insurance is a built-in feature that protects the employer from unexpectedly high individual or aggregate claims. While there is a premium for this coverage, it prevents potentially devastating financial losses from catastrophic claims that would otherwise fall to the Employer.
Food For Thought - “A year from now you may wish you had
started today.”
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